SAP MM Interview Questions and Answers
1. What do you know about SAP MM?
SAP MM is the functional module of SAP. It looks after the management of the material and obtains handling. To complete the procurement to pay process this module consists mainly of master data, a configuration of system and transactions.
2. What are the benefits or uses of material management?
The lot and serial traceability
Product life cycle management
Scheduling and resourcing
3. What are the features of material management?
Production and material control
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4. List out the essential components of material management.
Goods receipts and Inventory management
5. What is material requirement planning (MRP)?
It is a module in SAP enterprise resource planning. It is a type of planning tool to help production and procurement planners to create feasible and realistic plans which help to quickly initiate procurement and production process.
6. What is consumption-based planning (CBP)?
CBP is based on past consumption values which make use of the forecast or other statistical procedures to determine future requirements. Consumption-based planning (CBP) always triggers when the stock level plunge below the predefined reorder point or forecast requirements calculated using past consumption values.
7. What is the difference between MRP and CBP?
In material requirement planning, the prediction of material requirement is based on sales and operations planning while in, consumption-based planning the prediction of material requirement is made, based on historical demand for materials.
8. What is the Master production schedule (MSP)?
It is a plan for individual commodities to be produced in each period such as staffing, production, etc. It is mostly linked with manufacturing in which the plan denotes when and how much of each product will be demanded.
9. What is the planned order in material management?
In Material Management, planned order is sent to an industry and is a material requirement planning request for the procurement of a particular material at a determined time. It certainly specifies when the internal material movement needs to be made and the amount of material that is demanded.
10. What is production order and purchase order?
A production order defines which components and sequence of operations are to be used and how the order costs are to be resolved. It also determines which material is to be prepared, at which location, and at what time and how much quantity is required.
Formal requests or guidance from a purchasing firm to a vendor or factory to supply a certain quantity of goods (or) services at a certain point of time is called purchase order.
11. What is the process order?
Process Orders (PP-PI-POR) are the central component used for the accurate planning and execution of process manufacturing. A process order constitutes the production of batches (materials) in a production run or the rendering of services.
12. What is meant by transaction code in material management?
A transaction code (or t–code) consists of letters, numbers, or both, and is entered in the command field at the top of any SAP GUI screen. Every function in SAP ERP has an SAP transaction code that is associated with it. By using t-codes you can directly access any function in SAP.
13. What are contracts in material management?
A contract is a long-term agreement with a vendor to supply a material or provide a service for a certain period of time. These are specified consequently in release orders issued against the contract when the customer requires them.
14. Define purchase requisition?
A Primary document that is used as a part of the accounting method to launch a merchandise or supply purchase is called Purchase Requisition. By processing a purchase order, suitable controls can identify the business requirements for the products, as well as monitor the legitimacy of purchase.
15. How do you release and create purchase requisition in SAP material management?
Purchase requisition creation can be done in T-code ME51N and is a straightforward process:
Execute ME51N transaction.
Purchase requisition document type: NB – standard.
Source determination: ON or OFF.
Material: material number.
Storage location: in which the material is stored.
Vendor: It is automatically determined by using source determination – the field number
Tracking number: As covered in previous topics, the desired value can be entered manually
Valuation price: This should be copied from material master data if it is maintained there if not it has to be entered manually (if this field is not set as optional).
We can save transaction data, after entering the desired information in the fields.
16. What is meant by special stock in material management?
Special Stocks are stocks that belong to a company code. These are not placed in any storage location & no physical inventory is performed.
17. Mention the different types of stocks.
Returnable Transport Packaging
18. What is meant by master data?
Basically, Master Data is created centrally and is valid for almost all the applications. It remains constant over time but it is required to update it on a regular basis. For example, the Vendor is like a type of master data and he is used for creating purchase orders.
19. What is master data management?
A comprehensive method of enabling an enterprise to link all of its critical data to a common point of reference is called Master data Management. MDM also improves data quality, while streamlining data sharing across personnel and departments. In addition, it also can facilitate computing in multiple system architectures, platforms, and applications.
20. What is inventory management?
Inventory management is based on several key processes like Definition of movement types, reservations, goods issue, and goods receipt. Inventory management is used to manage a good inventory.
21. What are quotations in SAP material management?
Quotations in SAP MM are certain requests for vendors which give us information about their terms and conditions, best prices, schedules of deliveries and other information.
22. What is invoice processing?
The process in which a company’s account payable is used to manage supplier invoices is called Invoice Processing. It begins when you accept an invoice and ends when payment has been made and reported in the general ledger.
23. How is the quota rating checked?
The formula for checking the quota rating is an addition of the base quantity of the quota and the allocated quantity quota and divides it by the overall quota.
24. Mention the last stage in the cycle of procurement?
The last stage of the procurement cycle is the verification of the invoice. This also updates the documents which are related to the accounts and finances. There is a difference between the real invoice and the blocked one the real invoice can be handled by verification of the invoice.
25. What are the different types of ERPs?
Different types of ERPs are as follows: SAP, Microsoft Dynamics, PeopleSoft, Oracles, Siebel, BAAN. These are some of the different types of Enterprise Resource Planning.
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